Rumors aim 'to topple government'

Rumors aim 'to topple government'

JAKARTA (JP): President Soeharto said yesterday rumors that
his health was failing, he was dead, or that the Armed Forces
were planning a coup, were aimed at destabilizing the economy and
toppling the government.

The President accused "certain groups" of attempting to create
monetary chaos so as to create a lack of confidence in the
government as a part of their political strategy.

"There were rumors that I had died, and had been detained, and
that a coup had taken place, which were aimed at weakening the
rupiah... to bolster people's distrust of the government and
eventually to create a revolution," Soeharto said in a dialog
with the country's top 57 businessmen at the Bina Graha
presidential office.

Soeharto called for Indonesian entrepreneurs to work shoulder
to shoulder with the government to overcome the crisis, and vowed
that he would do everything to help the private sector, which is
the country's economic backbone.

"I have ordered ministers to approach the private sector to
work jointly to resolve the ongoing monetary crisis with the
government, because it is not only the government's
responsibility but also the entrepreneurs," Soeharto said.

Yesterday's meeting was Soeharto's second official appearance
since doctors ordered him to rest earlier this month to regain
his physical fitness after an exhausting overseas trip last
month.

Last week he attended a graduation ceremony at Indonesia's
Military Academy at Merdeka Palace, during which he warned the
public against attempting to "fish in murky waters" -- exploiting
the current crisis to further one's interests.

In an attempt to revive the ailing economy and to bolster
public savings, Soeharto said yesterday that the government was
considering offering higher interest rates on U.S. bank notes
than are offered offshore.

This is expected to encourage people to deposit their money in
national banks.

"If they do not believe in the rupiah, we will issue notes in
dollars. We are still making all necessary preparations for this
plan, which is aimed at restoring public confidence in the
rupiah," the President said.

Soeharto also quoted experts who said that the country's
businessmen had parked some US$80 billion in offshore funds.
However, he reminded the audience about the need to check the
report's accuracy.

"If it is true, it's better that the money be brought home to
help cash-strapped companies to enable them to service their
debts," he said.

The government had to find Rp 32 trillion ($6.03 billion) to
service its debt and the interest on it next year, he said.

"We must also provide about Rp 15 trillion to subsidize fuel
oil and food including wheat," said Soeharto.

The government earlier scrapped the National Logistic Bureau's
monopoly on wheat trading but continues to subsidize wheat for
public consumption.

He also briefed the entrepreneurs on the progress of the
People's Consultative Assembly (MPR) sessions, which concluded
last week.

"I received a report that (the MPR Working Committee) has
completed 99 percent of the draft State Policy Guidelines," he
said.

Businessman Sofjan Wanandi told Soeharto that the plan to
offer savings in dollars might negatively affect public
confidence in the rupiah if the plan was launched without
adequate preparation.

"I think this needs to be explained so that the public's
confidence in the rupiah remains (and) to avoid giving the
impression that psychologically the government itself does not
have confidence in the rupiah.

"This is only a temporary policy to attract those who put
their money in overseas banks with only two percent interest," he
said.

Also at the 90-minute talks were Minister/State Secretary
Moerdiono, Minister of Industry and Trade Tunky Ariwibowo,
Minister of Finance Mar'ie Muhammad and Governor of Bank
Indonesia Soedradjad Djiwandono.

Several heads of conglomerates were also present, including
Soedono Salim, Prayogo Pangestu, Sudwikatmono, chairman of Sinar
Mas Group Eka Tjipta Widjaja, and Soeharto's children Siti
Hardiyanti Rukmana, Siti Hedijati Prabowo and Bambang
Trihatmodjo. (prb)